Plant based burgers that bleed?! Could companies like Beyond Meat and Impossible Foods be the future of our food needs?

Tech giants, venture capitalists and famous names such as Bill Gates and Leonardo DiCaprio are backing a burgeoning industry that hopes to disrupt traditional agriculture. Beyond Meat recently filed for an IPO and it’s the first public listing from a slew of companies offering vegetarian meat products that taste, smell and cook like the real thing. Yes really.

The ethical debate and health concerns of factory food production have done nothing to quell our hunger for meat. But more recently, the effects of global warming have shone a light on the industry- will this be the start of meat’s ‘Tesla moment’?

Agriculture has a huge environmental impact, generating around 24% of global greenhouse gas emissions (according to the US Environmental Protection Agency[1]). To add context around that, the global transportation industry accounts for just 14%.

And with meat consumption predicted to rise, forecasts from climate change scientists warn that “unabated, the livestock sector could take between 37% and 49% of the GHG budget allowable under the 2°C and 1.5°C (Paris agreement GHG) targets, respectively, by 2030.”[2]

It is also a drain on resources. It is estimated that livestock occupy 30% of the planet’s land surface and account for 78% of all agricultural land use. 1,799 gallons of water are needed to produce a single pound of beef[3].

Animal meat is just a molecular structure of water, protein, fat and carbohydrates and we are very quickly discovering they can be replicated – but by using entirely plant based ingredients. As Jessica Appelgren of Impossible Foods describes it; “We are at the molecular level figuring out what makes meat meat and reconstituting that from the animal kingdom.”[4]

And they are just a bit more sustainable…

Source: Beyond Meat

It’s proved challenging but we are beginning to move beyond fossil fuels. So, who’s to say we can’t transition to less meat in our diets? The reason Tesla has been such a successful disruptor of the auto industry is because they offer a similar product, but without the nasty side effects of a traditional combustion engine.

Cars and burgers. Modern society loves them both. But if disruption of the latter is possible, it needs a viable alternative….and maybe another eccentric CEO!! Companies like Beyond Meat and Impossible Foods could provide the solution.

1 https://www.epa.gov/ghgemissions/global-greenhouse-gas-emissions-data
2 Harwatt, H. (2018): Including animal to plant protein shifts in climate change mitigation policy: a proposed three-step strategy, Climate Policy
3 Livestock’s Long Shadow: Environmental Issues and Options, FAO (2006)
4 National Geographic, November 2018, p86.

About the author

Euan Ker is a sustainable investment analyst. He is responsible for analysing and monitoring environmental, social and governance factors within the Global Sustainable Equity Strategy. Euan joined us in 2014 as an investment implementation analyst with responsibility for implementing macro investment decisions across a number of fund-of-fund mandates, totaling some £13 billion under management. Prior to moving to the ESG Research team in 2018 his responsibilities also included asset class, regional and currency hedging overlays through derivatives. Euan has a 1st Class Honours degree in Management with Economics from Robert Gordon University. He has the IMC professional qualification and has 5 years’ industry experience.*

*As at 30 November 2018.

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